This scheme will comprise 242 purpose-built rental homes over 18 floors with 72 car parking spaces.

The £40m forward purchase agreement hinges on landowner Stirling Investments securing detailed planning consent and successful completion of the development.

Demolitions crews cleared the 4.6 acre site in 2014 and only the landmark clock tower remains of the old newspaper office building.

Outline planning consent was granted for a mixed-used scheme, made up of three office buildings and one residential or hotel in early 2015.

Previous development plans granted outline planning

Leeds is one of five key target cities for Grainger’s PRS investment strategy, alongside Bristol, Manchester, Birmingham and London.

Helen Gordon, Chief Executive of Grainger, said: “We are pleased to announce this sizeable PRS build-to-rent acquisition that will deliver 242 new, purpose-built rental homes in Leeds city centre. Leeds is a vibrant city which holds all the key characteristics of our PRS investment strategy, including a large professional workforce and significant economic growth potential.”